Peter Eavis notes that “Tesla has not fully weaned itself from government support” because buyers “of Tesla cars can get substantial tax credits that reduce the purchase price.” Yglesias defends this tax credit:

Now it’s quite right to say that current policy is not exactly optimal. A $20 per ton carbon tax with the funds used to lower other taxes would be much better nudge than a regressive tax credit initiative. But you rarely get optimal policy, and the course we’re taking is a reasonable and practical one.